Market for renting 4x2 IP

[Jebb]

Hi guys

What is the current market like for rent 4x2 houses? Is there much demand for such property? Id imagine the vacancy rate of small 2x1 townhouses would be pretty low, but what about full 4x2 houses that are going for $500 a week in a decent area? Who rents these kinds of houses? Wouldn't they be better off buying their own property with the FHOG instead of throwing money away on rent?

Just after some opinions.

J.

 

[letiha]

Depends on the area...

 

[Ridin-High]

my experience has been waiting for abit, i think its that time of the year, but it doesn't matter i am owner occupied atm

 

[The Judge]

Hi Jebb, what do you call a decent area. That figure you are quoting will only cover a loan of $400k and that is interest only, cant think where you would buy a "decent" house for that much

 

[GoAnna!]

We let a crappy 4 x1 for $470. In melbourne. Lots of demand. We selected share household.

We let 2 x 1 for $450 per week in Hobart. (every type of household imaginable - retired couple, divorced business man, overseas students, etc)

We let a furnished studio for $450 per week in Hobart. (tenants from interstate or overseas).

Watch www.realestate.com.au Talk to (property management) agents. You will soon get a feel for what is in demand (or not)

 

[Jebb]

Thanks for the replies people.

Im looking in the Karrinyup/Gwelup/Carine area for those of you in WA. It sounds possible then, renting for between 450 and 500. Theres some nice properties Ive seen on realestate.com.au for around the 550k mark that are not too old, so maintenance shouldn't be too much of a problem.

Id be getting a loan of around 450k with a 100k deposit and another 2x1 IP (around 300 pw) servicing the loan, so hopefully it would be CF neutral all up.

Its amazing how much people will pay, when they could pay a bit more and pay off to own their own home.

Anymore examples of such rentals?

J.

 

[BayView]

Hi guys

What is the current market like for rent 4x2 houses? Is there much demand for such property? Id imagine the vacancy rate of small 2x1 townhouses would be pretty low, but what about full 4x2 houses that are going for $500 a week in a decent area? Who rents these kinds of houses? Wouldn't they be better off buying their own property with the FHOG instead of throwing money away on rent?

Just after some opinions.

J.

Look at the level of income for the area, and the standard of the area.

$500 per week would be well above the average income affordability I'd reckon, therefore your pool of renters is smaller.

This means less demand, so possibly longer periods of vacancy.

 

[Bon]

Its amazing how much people will pay, when they could pay a bit more and pay off to own their own home

Yeah, but this has only just recently become the case... a few months ago people would have been paying close to 9% interest.

Give it time and people with secure jobs and confidence will probably make the switch to owning a house..